The recent budget has enhanced the new tax regime and introduced new tax rules. While you can read the highlights here, let’s dive to see how these changes impact the different fund categories.
Impact on investors Higher taxes on equity gains will reduce your post-tax returns, but equity remains the best asset class for long-term investments, so stick to your plan. International and gold funds benefit from a tax reduction to 12.5 per cent starting April 1, 2025. Until then, redemptions attract a marginal tax rate. While the reduced tax for international funds is welcome, we had hoped for enhanced overseas investment limits. Hybrid funds continue to shine with their tax-free auto-rebalancing feature. Our preferred categories are aggressive hybrid and equity savings funds due to their stable asset allocation. The new tax regime